FuelCell Energy Earnings: Revenue Growth is Making Shareholders Happy

FuelCell Energy Inc. (NASDAQ:FCEL) reported its results for the fourth quarter. Fuelcell Energy is engaged in the development and production of stationary fuel cells for commercial, industrial, government and utility customers.

Results: Loss widened to $12.1 million (7 cents per diluted share) from $7.9 million (loss of 6 cents per share) in the same quarter a year earlier.

Revenue: Rose 2% to $35.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: FuelCell Energy Inc. reported an adjusted net loss of 5 cents per share. By that measure, the company fell in line with the mean analyst estimate of a loss of 5 cents per share. It beat the average revenue estimate of $32.9 million.

Quoting Management: “We announced the largest order in our history combined with a license agreement to add manufacturing capacity in Asia that will provide a multitude of benefits to FuelCell Energy,” said Chip Bottone, President and CEO, FuelCell Energy, Inc. “These actions, combined with the recent sale of a 14.9 megawatt fuel cell park in Bridgeport, Connecticut and initiatives in Europe, have laid the foundation for global growth as we work to expand sales volume and reduce product costs in our push to profitability.”

Key Stats:

After missing the mark in the previous two quarters, the company met analyst estimates. In the third quarter, it fell short by 2 cents, and in the second quarter, it was under-estimate by one cent.

Last quarter’s year-over-year revenue increase breaks a two-quarter streak of revenue declines. Revenue fell 4.7% in the third quarter and fell 15.6% in the second quarter.

Margins rose in the third quarter after falling the quarter before. Gross margins grew to 2.5%, up 1.2 percentage points from the year-earlier quarter. In the second quarter, the figure rose 9.7 percentage points to -9.2% from the year earlier quarter.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 4 cents a share. For the fiscal year, the average estimate has been unchanged at 21 cents a share.